Wednesday, January 21, 2009

Caledon In Preliminary Talks With Suitors

Mining company Caledon Resources has said it is in preliminary talks with “a number of parties” that may lead to an offer for the company.

To date Chinese companies have been the most active bargain buyers of junior miners, hunting primarily in Australia, whose mines are relatively close to China and in a convenient time zone.

John McGloin, analyst at Arbuthnot, said a Chinese company was a likely suitor.

“There is a shortage of good quality coking coal,” he said, “and Caledon has a good asset that the market recognises”.

Caledon recently began production at its Cook mine in Queensland.

Source: FT

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